Lower Low on S&P500, But Lower High on VIX

S&P500 Lower Low

We have just had a clearly negative week on equities, with S&P500 declining 2.21% and 4 out of the 5 days negative (and Thursday was a black zero). Volatility was not extremely high, but the index has made a lower low (closed at 1428.59 this Friday, compared to 1433.32 close on 26 September). Does this mean that the 4-month rally is coming to an end?

VIX Lower High

In spite of the lower low on S&P500, the VIX (CBOE Volatility Index) did not exceed previous high this week. It was trading in a relatively narrow range between 15 and 17 and closed at 16.14 on Friday.

VIX Futures Curve Flattens

VIX futures curve continued to flatten, with the short end rising up to 0.9 points and the long end going down up to 0.6 points this week.

VXV Index

The VXV (CBOE S&P 500 3-Month Volatility Index – 93-day version of the better known VIX) was trading between 16.5 and 18.5 this week and closed at 17.57. Like the VIX, it did not exceed the high from late September.

By remaining on this website and/or using Macroption content, you confirm that you have read and agree with the Terms of Use Agreement just as if you have signed it. The Agreement also includes Privacy Policy and Cookie Policy. If you do not agree with any part of this Agreement, please leave the website and stop using any Macroption content now.

All information is for educational purposes only and may be inaccurate, incomplete, outdated or plain wrong. Macroption is not liable for any damages resulting from using the content. No financial, investment or trading advice is given at any time.